Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms

Detalhes bibliográficos
Autor(a) principal: Sardo, Filipe
Data de Publicação: 2020
Outros Autores: Serrasqueiro, Zélia, Félix, Elisabete G.S.
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/11328/3453
Resumo: This study analyses small knowledge-intensive service (SKIS) firms’ capital structure rebalancing, before and after Venture Capital (VC) entry. We use data for a sample of 1161 Western European SKIS firms, for the period 2006–2015. Two sub-samples were created: one composed of firms before VC entry; the other composed of SKIS firms after VC treatment. We use panel data models and the system GMM (1998) dynamic estimator. The results obtained suggest that after VC entry, SKIS firms are close to the predictions of the pecking order theory. Therefore, SKIS firms after VC participation on firm equity, probably become less dependent on debt, choosing internal finance to fund assets that are firm-specific or have an intangible nature, and, hence cannot be pledged as collaterals.
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spelling Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firmsCapital structure rebalancingSmall knowledge-intensive service firmsVenture CapitalEuropeThis study analyses small knowledge-intensive service (SKIS) firms’ capital structure rebalancing, before and after Venture Capital (VC) entry. We use data for a sample of 1161 Western European SKIS firms, for the period 2006–2015. Two sub-samples were created: one composed of firms before VC entry; the other composed of SKIS firms after VC treatment. We use panel data models and the system GMM (1998) dynamic estimator. The results obtained suggest that after VC entry, SKIS firms are close to the predictions of the pecking order theory. Therefore, SKIS firms after VC participation on firm equity, probably become less dependent on debt, choosing internal finance to fund assets that are firm-specific or have an intangible nature, and, hence cannot be pledged as collaterals.Elsevier2021-04-21T17:08:33Z2020-01-01T00:00:00Z2020info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/11328/3453eng0954-349X10.1016/j.strueco.2020.02.003Sardo, FilipeSerrasqueiro, ZéliaFélix, Elisabete G.S.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-06-15T02:11:56ZPortal AgregadorONG
dc.title.none.fl_str_mv Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
title Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
spellingShingle Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
Sardo, Filipe
Capital structure rebalancing
Small knowledge-intensive service firms
Venture Capital
Europe
title_short Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
title_full Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
title_fullStr Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
title_full_unstemmed Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
title_sort Does Venture Capital affect capital structure rebalancing? The case of small knowledge-intensive service firms
author Sardo, Filipe
author_facet Sardo, Filipe
Serrasqueiro, Zélia
Félix, Elisabete G.S.
author_role author
author2 Serrasqueiro, Zélia
Félix, Elisabete G.S.
author2_role author
author
dc.contributor.author.fl_str_mv Sardo, Filipe
Serrasqueiro, Zélia
Félix, Elisabete G.S.
dc.subject.por.fl_str_mv Capital structure rebalancing
Small knowledge-intensive service firms
Venture Capital
Europe
topic Capital structure rebalancing
Small knowledge-intensive service firms
Venture Capital
Europe
description This study analyses small knowledge-intensive service (SKIS) firms’ capital structure rebalancing, before and after Venture Capital (VC) entry. We use data for a sample of 1161 Western European SKIS firms, for the period 2006–2015. Two sub-samples were created: one composed of firms before VC entry; the other composed of SKIS firms after VC treatment. We use panel data models and the system GMM (1998) dynamic estimator. The results obtained suggest that after VC entry, SKIS firms are close to the predictions of the pecking order theory. Therefore, SKIS firms after VC participation on firm equity, probably become less dependent on debt, choosing internal finance to fund assets that are firm-specific or have an intangible nature, and, hence cannot be pledged as collaterals.
publishDate 2020
dc.date.none.fl_str_mv 2020-01-01T00:00:00Z
2020
2021-04-21T17:08:33Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/11328/3453
url http://hdl.handle.net/11328/3453
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 0954-349X
10.1016/j.strueco.2020.02.003
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv
repository.mail.fl_str_mv
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